Frontier Lithium Closes $1 million with First Tranche of Flow-Through Financing and announces over-subscription
TSX VENTURE: FL
SUDBURY, ON, May 15, 2019 /CNW/ - Frontier Lithium Inc. (TSX.V: FL) (the "Company") is announcing that it has received interest above the previously announced $1,500,000, and accordingly intends to increase the amount to be raised under its non-brokered private placement offering to $2,000,000, subject to TSXV approval. All other terms of the offering remain as set out in the Company's April 29, 2019 news release. The company also closed its first tranche of the non-brokered private placement for a total of $1,000,000 of flow-through funding.
The company now proposes to issue 5,000,000 units ("FT Unit") at a price of $0.40 each. Each FT Unit will consist of one common share in the capital stock of Frontier ("Common Share") issued on a flow-through basis and a ½ Common Share purchase warrant ("FT Warrant"). Each full FT Warrant will entitle the holder purchase one Common Share a price of $0.50 per Common Share until the date which is 24 months following the closing date of the Offering, whereupon the FT Warrants expire. The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period.
Frontier Lithium reserves the opportunity to grant to eligible persons a finder's fee of a maximum 6% of the gross proceeds of the Offering and finder warrants of a maximum of 6% of the total number of Units sold under the Offering. Each finder warrant will be exercisable at an exercise price of $0.50 CDN into one common share for a period of 24 months from the date of issuance.
All of the Shares and Warrants issued pursuant to the private placement are subject to a minimum 4-month and one day statutory hold period. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSX-V") and applicable securities regulatory authorities. Proceeds from the financing will be used to advance exploration of Frontier's 100% owned PAK Lithium Project located in northwestern Ontario.
The company announces that it entered into an employment contract with Bora Ugurgel effective November 1, 2018. Mr. Ugurgel will lead the investor relations and communication activities for Frontier and serve as the point of contact for investor engagement to the financial community and with current and potential shareholders.
Under the terms of the employment, Frontier granted Mr. Ugurgel an option to purchase 500,000 common shares at an exercise price of $0.40 per share under the terms of the stock option plan of Frontier, for a period of five (5) years from the date of grant. The options were disclosed on November 7, 2018 press release.
About Frontier Lithium
Frontier is a pure play Lithium junior mining company with the highest quality hard rock deposit in North America. It also has the largest land position on the Electric Avenue, Ontario's emerging premium lithium-metal district hosted in the Canadian Shield of northwestern Ontario. The Company's objective is to is to participate in a fully integrated North American Battery Ecosystem. Our goal is to become a near term producer and scale up to 30,000 tonnes LCE (~3% of the world Lithium demand) by 2025. Frontier is implementing a phased methodology to development for becoming a rare producer of premium technical lithium concentrates required to produce high quality glass and ceramics as well as supplying chemical grade concentrates for the production of lithium chemicals required for the burgeoning lithium battery industry.
Frontier maintains a tight share structure with management ownership of 30% of the Company.
About the PAK deposit
The PAK Deposit is located at the south end of Ontario's Electric Avenue, which also hosts Frontier's new discovery at Spark showing (2km northwest) and the Pennock Lake pegmatite occurrence a further 30km along Frontier's PAK Lithium Project. The PAK deposit has a current Measured and Indicated Resource of 7.5 million tonnes of 2.02% Li2O and an Inferred Lithium Resource of 1.8 million tonnes of 2.10% Li2O which has a rare technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3) as per its NI 43-101 Technical Report, "Preliminary Feasibility Study" disseminated on April 16, 2018.
Additional information regarding Frontier Lithium is available on SEDAR at sedar.com under the Company's profile and on its website at frontierlithium.com, including various pictures of ongoing work at the project.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.